Business Debt Relief

Many small business owners personally guarantee business credit cards, lines of credit, or loans. If you personally guaranteed the debt, you're liable even if the business itself closes — which means it may qualify for personal debt settlement.

• Business credit cards, especially those under a personal guarantee
• Unsecured business lines of credit
• Personally guaranteed loans

Debt held strictly under an LLC or corporation with no personal guarantee is generally not eligible for personal debt settlement, since the business entity — not you personally — is the borrower.

MCAs are a common source of small business debt trouble. Many carry very high effective rates and aggressive collection practices. Settlement of MCA debt is possible but often requires specialized negotiation experience, since MCA providers use unique contract structures (like Confessions of Judgment in some states).

The settlement mechanics are similar to consumer debt — building savings, allowing delinquency, and negotiating a lump-sum payoff — but business creditors may have different risk tolerances and negotiation patterns than consumer credit card issuers.

If business debt is extensive and threatens ongoing operations or personal assets significantly, consulting a bankruptcy attorney about Chapter 7, 11, or 13 options (personal or business) may be worth exploring alongside settlement.

Business debt situations are often more complex than typical consumer debt — consider consulting both a debt relief specialist and a small business attorney or accountant before deciding on an approach.